How to Invest $1,000,000 for Financial Independence and Retirement

Jalpan Dave Blog 2 Comments

Joe over at the Give Earn Live blog has a wonderful contest going on right now – How to Invest a Million. It is often debated what is the best way to invest a million dollars so that you can live the rest of your life financially free.

So in the true spirit of this blog, let’s dissect this question intellectually, look at all three sides of every coin and then determine what would be the best way to invest a million dollars given the economic circumstances of today (as I write this, it is 30th September).

Once you’ve read my suggested strategy, do hop over to Joe’s blog to cast your vote as to which once you think is the best portfolio.

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How much money do you need to start investing?

Jalpan Dave Blog 0 Comments

I’m glad you asked!

Wondering how much money you need to start investing means that you are seriously considering investing. When I first started 5 years ago, I had the exact same question in mind – how much do you need to start investing and how should I go about it.

Short answer – you can start investing with as little as $100. Do a quick google search with the keywords “how much money do you need to start investing” and you will find tons of advice on how you can start with as little as even $50.

What I accidentally stumbled upon while talking to a friend who had this same question is that:

  1. There is an assumption that once you’ve invested some money, it’ll grow forever and one fine day, you’ll have enough to retire! Yay!
  2. People typically have no savings plan. Let’s say I told you that you need $1000 to start investing. How would you get there? For most people, it would mean controlling expenses like there is no tomorrow in the hope that a day will come when you see $1,000 or more in your checking account.

Hence, my long answer would be – setup a regular automatic savings plan so that this question becomes irrelevant!

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Will cutting back on spending really help you build wealth?

Jalpan Dave Blog 0 Comments

One of the most widely shared advice on growing wealth is to “cut back on luxuries.” If you spend $5 on coffee everyday for 365 days of the year, that’s $1,825 spent annually on coffee alone. Instead, if you had invested that in the stock market for 30 years earning an average annual return of 8%, that money would have grown into $206,741.86!

Whilst mathematically correct, the same can be said of a lot of things we spend money on – travelling, cinema visits, eating out, getting a massage….what else? Buying one brand of pasta over another? If we get creative, we can find all kinds of ways to cut back a few dollars here and there.

But does it really make a difference?

Let’s dive into the logic behind this belief and also look at the counter argument – that saving money on tiny things doesn’t make much of a difference and in facts, hurts you psychologically.

Then we can decide what works best for us.

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How to start investing in the stock market for beginners – a hands-on 3 step guide

Jalpan Dave Blog 2 Comments

When I was a 13 year old kiddo, I spent my summer holidays reading the book “Rich Dad Poor Dad.” Yeah, I know I’m a weirdo.

But looking back, I am glad my Dad gave me that book to read because it sowed in me the seeds of investing and managing your money.

At the beginning though – it was as much a blessing as it was a curse because after I read that book, I was so passionate about investing that I read and learned everything I got my hands on aaaand…… confused. This “investing thing” seemed so complicated and everybody advised different things.

Some said “Just index it bro.” Others said I should follow the greats and do value investing and dividend investing like Warren Buffett.

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